As per the report published by The Brainy Insights, the global Automotive Axle market is anticipated to grow from USD 25.24 billion in 2020 to USD 39.02 billion by 2028, at a CAGR of 5.59% during the forecast period 2021-2028.
The surge in the production of vehicles and the advancement in technology in the automotive sector are some of the factors fuelling the Automotive Axle market.
The axle should be robust in construction, but in design, it should be simple in structure. The automotive vehicle used it in different functionalities for transmission and steering. The axle is used to transfer the torque from the axle to the wheels. There are basically two kinds of the axle, and they are drive axle and dead axle. The Drive axle is the axle that is driven by the engine, and a dead axle is a free rotating axle.
These are used by trailers and heavy-duty trucks to bear loads of heavy goods. A full floating axle holds the vehicle weight on the vehicle casing and is used to transfer torque from the differential to the wheel. Semi floating are mostly used in lighter trucks on the rear side. This helps in propulsion and in carrying the weight of the truck. The surge in demand for SUVs and MUVs and the increase in the production of the overall vehicle are the reasons that will propel the market in the forecasting period.
The growing demand for electric and hybrid vehicles has also increased the demand for the automotive axle market. Commercial vehicles like heavy-duty trucks with the advancement in technologies in the axle can handle the trucks better when it is in motion and also handle its weight in a much better way in motion. The increasing demand for hybrid vehicles and electric vehicles is driving the automotive axle market.
The fluctuation in the price of raw materials producing automotive axles is acting as a restraint for the market. The fluctuation in the price would cause the fluctuation in the supply of automotive axle, which ultimately someday would not be able to meet the demand. The price of the automotive axle will then rise, resulting in less buying of an axle, and the end-user industries would buy lesser new advanced automotive axle, which will reduce the demand of the automotive axle market.
Key players for the global automotive axle market include SHOWA Corporation, GKN plc, American Axle & Manufacturing Inc., ZF Friedrichshafen AG, HYUNDAI WIA, CARDONE Industries, Dorman Products., Pro Comp., JTEKT Corporation and Dana Incorporated, among others.
- The big players are now focused on the implementation of strategies like joint venture, product innovations, merger and acquisition, partnerships, etc., to gain the market share and to strengthen its position in the global Automotive Axle industry. For instance, in April 2017, American Axle & Manufacturing, Inc. acquired Metaldyne Performance Group Inc. This acquisition helped the organization in expanding business diversification by delivering innovative solutions to the customers.
- In March 2018, Dana Incorporated announced to acquire UK-based GKN plc. By this acquisition, the organization has become the world leader in vehicle drive systems, and this also has put the organization in the leading position in the electric propulsion segment.
The front axle segment is accounted for the highest market value of USD 14.56 Billion in 2020
The type segment is divided into the rear axle and front axle. The front axle segment is accounted for the highest market value of USD 14.56 Billion in 2020. There is a rise in the number of passenger cars. At present, passenger cars are built on the front-wheel-drive platform. Also, front-wheel-drive cars are cheap to build.
The alloy segment accounted for USD 15.49 Billion of market value in 2020
The material type segment includes carbon and alloy fiber. The alloy segment accounted for USD 15.49 Billion of market value in 2020. The carbon fiber segment will increase in the forecasting period because of its high strength and rigidity.
The single segment accounted for USD 13.81 Billion of market value in 2020
The propeller shaft type segment consists of single and multi-piece. The single segment accounted for USD 13.81 Billion of market value in 2020. This is because of its lightweight, which increases fuel efficiency. There is an increase in the demand for SUVs vehicles because of the increase in per capita income of the people of developed and developing countries, which is fuelling the use of single-piece propellers.
Regional Segment Analysis of the Automotive Axle Market
- North America (U.S., Canada, Mexico)
- Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
- Asia-Pacific (China, Japan, India, Rest of APAC)
- South America (Brazil and Rest of South America)
- Middle East and Africa (UAE, South Africa, Rest of MEA)
The regions analyzed for the Automotive Axle market include North America, Europe, South America, Asia Pacific, the Middle East and Africa. The Asia Pacific region has the highest market value of USD 9.4 Billion in 2020. The surge in the per capita income of the people of developing regions like India and China is also increasing the sales of cars, which in turn is driving the automotive axle market. China, India and Japan held the majority in the production of the vehicle, which in turn is driving the automotive axle market. Europe had the second-largest market value of USD 6.36 Billion in 2020. Automotive organizations are trying to increase the fuel efficiency of vehicles. This has led to the use of lightweight axles and light automotive parts for vehicles.